Domain IV, Topic B, Procurement, Production, Distribution, and Service Flashcards
(90 cards)
__________
- First functional subsystem, function of acquiring material for production
Procurement
__________ __________
a) ______ center - Assigned both expense and revenue responsibilities (cafeteria)
b) ____ center - Manage expenses, but do not generate revenue (patient)
Purchasing department, profit, cost
___ - _______
Request samples from vendors, open cans and compare qualities (texture, aroma, taste)
Can - cutting
________, open market purchasing
a) Buyer requests quotes on specific items for specific amounts and qualities from one or more sources of supply
b) Contact made by phone or with salesman
c) Place order after considering price, quality, delivery
Informal
______, competitive bid buying
a) Submit written specification and quantity needs to vendors who then submit a price
b) Bids are opened together; place order with lowest bid (price)
Formal
______ _________
- Purchase goods at a specific price to be shipped later
Future Contracts
_____ _______
-Use single vendor for majority of purchases
Prime Vending
___________ ________
a) Personnel in one office does all purchasing for all units in that organization
b) Cost effective and time saving
Centralized Purchasing
_____ or __ - __ _________
a) Involves union of separate units (hospitals), not related to a single management, for joint purchasing
b) Economic advantage of large volume purchasing
Group, Co - op Purchasing
____ - __ - ____ purchasing
- Purchase products as needed for production and immediate consumption by customer, without having to store and record it in the inventory Receiving clerks take items immediately to area in which they will be used.
Just in time
______ ___________
-First document used in the purchasing process, internal form used to request items from the purchasing manager
Purchase requisition
_____ _____
-Completed by the buyer; written record of items ordered and quantities needed
Purchase order
________ ______
- Eliminate the need to call in daily or weekly orders
Standing orders
____ __ _____ (FOB)
- Products delivered with all transport charges paid
Free on Board
____ __ _____ (FOB) origin
- Buyer takes ownership at seller’s location
Free on Board
_________ written specifications
- Indicate quality by objective and impartial test results (graded food items, gauge of metals). Can - cutting: open cans for comparison among brands
Technical
________ _____ ______________
- Indicate quality by specifying a brand name
Approved Brand Specifications
___________ ______________
- Indicate quality by functioning characteristics of the product (pH level of detergents, how many dishes washed / minute)
Performance specifications
___________
- Descriptions of approved products that an organization (or a department) would like all personnel (who need such a product) to use. Volume discounts can be obtained)
Formularies
______ performance requirements
a) Consider past experiences with them, reliability, willingness to handle emergencies, their financial condition
b) Compare price, quality, service
c) Evaluate after several orders have been filled
Vendor
______ code of ethics
- Can serve as legal agent for the organization
a) consider first the interest of your company
b) buy without prejudice
c) obtain maximum value for each dollar spent
d) denounce bribery, kickbacks
e) respect your obligations
f) avoid collusion with vendors - decline gifts and favors that could compromise your ability to make objective purchasing decisions
Buyer’s
____ broker
- Does not own products; connects buyers with sellers
Food
______ ______ (EP) = portion size x # servings
Edible portion
Amount to purchase = ______ _______ / % yield (amount provided by 1 lb of the item)
Edible Portion